EU Court Ruling Shuts Down Malta Golden Passport Scheme
On April 29, 2025, the European Court of Justice (ECJ) ruled that Malta’s controversial Golden Passport scheme, officially known as the Individual Investor Programme (IIP), violates the principles of European Union law. The court found that granting Maltese—and thereby EU—citizenship in exchange for financial contributions, without requiring genuine ties to the country, undermines the integrity of EU citizenship and member state cooperation.
This landmark ruling marks the EU’s most assertive stance yet against citizenship-by-investment (CBI) schemes, which have come under growing scrutiny for years due to security, transparency, and ethical concerns.
What Was Malta’s Golden Passport Program and How Did It Work?
Launched in 2013, Malta’s Golden Passport program allowed high-net-worth individuals from non-EU countries to acquire citizenship by making a significant financial investment. The program required applicants to:
•Contribute €650,000 to Malta’s National Development and Social Fund
•Invest €150,000 in government-approved financial instruments
•Rent or purchase property in Malta for a minimum period of five years
Applicants could apply for citizenship after one year of residency, though in practice, the physical presence requirement was minimal. Since its inception, the program is estimated to have generated over €1.4 billion in revenue for the Maltese government.
Why the European Union Opposed Malta’s Citizenship-by-Investment Model
The European Commission repeatedly expressed concern over Malta’s Golden Passport model, stating that it effectively “commodified” EU citizenship and allowed individuals to gain access to EU rights with no real connection to the country. These rights include:
•Free movement across all EU countries
•The ability to live and work in any member state
•The right to vote in European Parliament elections
In addition to legal and ethical concerns, the EU flagged national security risks, arguing that due diligence standards in Malta were insufficient and inconsistently applied. Several high-profile individuals with questionable backgrounds were reported to have received Maltese passports.
Legal Consequences of the ECJ’s Decision for Malta and the EU
The ECJ ruling mandates that Malta terminate the Golden Passport program immediately.
The court emphasized that while member states retain the right to grant citizenship, they must do so in a way that reflects genuine integration, not just financial contribution.
This decision strengthens the European Commission’s authority to monitor and regulate citizenship schemes in all member states—particularly where EU rights are impacted. Similar pressures led to the termination of Cyprus’s and Bulgaria’s citizenship-by-investment programs in recent years.
How Malta Responded to the EU Court Ruling
The Maltese government reacted with disappointment but pledged to comply with the court’s decision.
Government officials indicated that while the citizenship route is now closed, they are exploring residency-by-investment alternatives that comply with EU standards.
In a public statement, Maltese authorities defended the program’s economic benefits but acknowledged that aligning with EU principles is essential for the country’s long-term credibility within the Union.
Impact on Global Investors Seeking EU Citizenship
For investors hoping to obtain EU citizenship through direct investment, the ruling is a major setback.
It effectively eliminates one of the fastest and most direct routes to EU citizenship, shifting the focus instead to residency-based programs that include longer integration periods and stricter requirements.
Golden Visa programs like:
• Portugal’s investment fund route
• Greece’s €250,000 property investment program
…are expected to gain traction as they offer residency—not citizenship—while remaining within the bounds of EU law.
The message from the EU is clear: citizenship is not a commodity, but a legal status earned through connection, residence, and social integration.
What This Means for the Future of Citizenship-by-Investment in Europe
The ECJ ruling against the Malta Golden Passport program signals the likely end of citizenship-by-investment in the European Union.
While such programs may still exist in other parts of the world, especially in the Caribbean, Europe is moving toward a unified legal framework that preserves the value and integrity of EU citizenship.
For global investors, the shift will likely bring more transparency, longer timelines, and a greater focus on long-term residency and integration rather than quick pathways to passports.
Investment migration advisors now recommend that individuals seeking EU access re-evaluate their goals and prepare for residency pathways that can eventually lead to naturalization, rather than expecting immediate citizenship.
A New Era for Investment Migration in the EU
The European Court’s ruling on Malta’s Golden Passport program marks a watershed moment in EU migration policy.
By prioritizing the security, unity, and legal principles of the Union over short-term financial gains, the decision sets a new standard for how countries manage citizenship.
As a result, the Malta Golden Passport scheme will likely be remembered not for its economic contribution, but for triggering a turning point in how Europe handles investment migration.
